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Originally Posted by FlyingScot
Yuck! Sorry to read that on multiple levels. I hope you find a great place soon.
We experienced exactly the same thing when we almost bought a place on Squam. Four bedrooms, including a guest cottage that was charming but falling down slowly, and a recent second floor addition to the main house. On inspection we discovered the lot dimensions were impossible for anything more than 2.5 bedrooms, and a clever ploy was the only thing that enabled them to add the second floor. So, just as in your case, a ticking time bomb of septic failure and/or responsibility, and also risk that rebuilding cottage would not be allowed.
Squam is a magnificent lake, but the price is often a fundamentally flawed house.
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It turns out the new well was put in 100% conforming. They added a 40 foot sleeve which essentially reduces the required set back proportionally depending how deep the sleeve is. All town approved. I thought for sure the assessor didn’t know it was sleeved and would adjust the load capacity back up to the original septic design. They specifically call out the new well as the reason for reduced load capacity. But they would not adjust it. It’s just to much money to risk what some board will approve or not approve some day. Everything was done by the book. I feel bad for the seller. But there are enough uneducated buyers out there that it will probably sell for the same money quickly.